06/04/2013 06:59 EDT | Updated 08/04/2013 05:12 EDT

Entrec to buy GT crane and truck fleet for $57 million, increase capital budget

SPRUCE GROVE, Alta. - Entrec Corp. (TSXV:ENT) has agreed to buy GT's Crane and Transportation Services Inc., in a $57-million deal that positions the Alberta-based heavy-equipment operator for expanded activity in the liquefied natural gas sector.

Entrec will pay with shares, cash and a three-year interest-bearing note. Entrec says it will also increase its 2013 capital budget by $3 million to $53 million.

"We are pleased to welcome GT's to the Entrec team," said John M. Stevens, Entrec's [resident and chief operating officer.

"With the combined operations of Entrec and GT's, we believe we will be well positioned to capture a significant portion of planned future investments in liquefied natural gas driven infrastructure within these regions. This is in addition to the strong market position we already enjoy in Northwest B.C. where many of the proposed LNG facilities will be constructed."

GT's president and CEO Greg Toews will become Entrec's executive vice-president operations and oversee Entrec's business operations in northwest Alberta and northeast B.C.

GT's has its base in Grande Prairie, Alta., and locations in Whitecourt, and Leduc, Alta. and Dawson Creek and Fort Nelson, B.C.

The company employs 180 people and operates a fleet of 45 cranes, including all-terrain, rough-terrain and picker trucks, 130 multi-wheeled trailers and 50 tractors.

Entrec has agreed to pay 9,054,336 common shares, $37,223,380 in cash, and provide an unsecured promissory note of $7,293,770 bearing interest at an annual rate of 7.25 per cent and due July 2, 2016.

The deal will give GT's sellers about eight per cent of Entrec's outstanding stock.